An IPO lists a company publicly via a price band, subscription window and allotment. Oversubscription makes headlines; fundamentals make returns.
New listings lack price history, so screen the prospectus: use of proceeds, promoter holding, anchor investors, and whether private-equity sellers are exiting at your entry price.
Example
IPOs subscribed 100x+ on retail frenzy routinely list flat and drift for a year - demand for the paper exceeded demand for the business.
In Ticker Screener
Add IPO allotments to a dedicated portfolio the listing morning; price alerts catch the post-listing base forming while hype fades.
Frequently asked questions
Are IPOs good investments?
Selectively. Established-profit IPOs at sane multiples compound; loss-making story IPOs at peak multiples mostly transfer wealth from public to promoters.
Related terms
Market Cap
Price times shares outstanding: the market's price tag for the whole company. Defines large, mid and small caps.
EPS
Earnings per share: the company's yearly profit divided by share count. The 'E' inside P/E.
P/E Ratio
Price-to-earnings: what you pay for each rupee or dollar of yearly profit. The starting lens for cheap vs expensive.
US Slowdown Playbook: Rebalancing Indian Portfolios
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P/E, ROCE, ROE, P/B, dividend yield and market cap — live beside every price in your watchlist.